Individual and joint account tax information

Clients have two types of transactions that are subject to tax reporting:

• Dividend and capital gains distributions
• Shares sold or exchanged*
   

* Not applicable for shares sold or exchanged from the American Funds U.S. Government Money Market Fund.

Dividends are a distribution of a portion of a fund’s earnings made to a client’s account. Dividends that are classified as “qualified dividends” may be subject to a lower tax rate.

When a fund sells securities at a profit, the sale creates a capital gain for the investor. When an investor sells or exchanges shares for:

• More than the amount paid for them (cost basis), it creates a capital gain
• Less than the amount paid for them, it creates a capital loss
   

American Funds’ investment vehicles can realize two types of capital gains: short-term and long-term. Net short-term capital gains are distributed to investors as income dividends and are taxed at ordinary income tax rates. Long-term capital gain distributions are currently taxed at a maximum rate of 20%.*

* This rate does not include the 3.8% surtax applicable to net investment income for higher income taxpayers.

Form 1099-DIV reports these earnings under the primary account owner’s Social Security number (SSN).

Form 1099-B reports any gains or losses from the sale under the primary account owner’s SSN.

Tax forms are available online by mid-January and mailed to clients by January 31. Refer to the tax form schedule on the investor website for specific dates.

To view and print tax forms when they are available:

1. Log in to Client Accounts
2. Locate your client’s account
3. Click Statements & Tax Forms